struggling renting an IP out; qld

[TMNT]

a few opinions would be apprecaited,
short version
property now been on the market for 7 weeks odd now, total of 3-4 parties inspected across 4 inspections, 3 applications taken, none proceeded

house: 3bdr highest, recently budget renoed, in redbank plains

ad is quite good, photos good,

the only bug ive had is being quoted $320-$340 per week (quoted half way through reno), its now dropped from this range down under $300, which sort of annoys me, because I was quoted unrenoed $300, when searching for managing agents.

a few weeks ago, got told at $270 it will walk out the door, after subsequent price drops its almost at this price and still no interest,

there arent many other agents that seem to specialise in this suburb, so I cant really try others for their opinion, plus the attitude of the agent I dont like (more a, take it or leave it type attitude when I try and negotiate anything except price drops)

the only option im thinking of is getting another gent on board and giving them an option to list or exclusive listing

 

[Biz]

Link to the listing?

 

[marg4000]

Then it all boils down to price.

It is a rare tenant who will pay over comparable rents.

Go on realestate.com and check out the properties nearby that are similar to yours, and ensure you are in the lower bracket.

Another tip - searches can be done in price brackets, so ensure you come in within those parameters. A property for $295 will show in the $250 to $300 range, whereas one for $305 won't.

Rents can move quickly depending on the number of properties available.

If you want a tenant, you will have to meet the market. You can't expect much interest from a PM if the property is overpriced - simply wasting everyone's time.
Marg

 

[TMNT]

I understand its basically 99% price, what did peeve me was the higher uote I was given, yes at that price in hindset its well overpriced,

at the current price I think its about market,

just trying to work out whether the agent is doign the best they can or ive got a bit of a dud for whatever reason,

 

[TMNT]

Link to the listing?

sorry, might keep the link private to keep the agent out of this, dont really want to jeorpardise things

 

[DavidMc]

What is YOUR estimate of the market rent?

(You may have been a victim of the good old 'quote lie').

 

[Biz]

What times/days are they doing the opens?

Have they taken good pictues?

Is the listing text relevant and lists all the features of the property.


I had one I advertised recently that was still vacant with next to no interest after two weeks. House was newly renovated and sharply priced so It should have leased easily the first week but I felt the agent was dragging their heels.. I insisted on better images, I re wrote the description my way in point form, dropped the rent a little and insisted on 2 opens as week. Within a week there were 2-4 sets of people at the open and I had it leased.

 

[TMNT]

What is YOUR estimate of the market rent?

(You may have been a victim of the good old 'quote lie').

maybe $280-$285 per week

if we had a lot more interest, i probably wouldnt be too fussed, but 3-4 parties in 4 inspections total is whats concenring me

an agent cant force someone to apply which I undersantd

, an agents skills start off in the marketing side of things on how its presented etc

 

[Encarta]

maybe $280-$285 per week

if we had a lot more interest, i probably wouldnt be too fussed, but 3-4 parties in 4 inspections total is whats concenring me

an agent cant force someone to apply which I undersantd

, an agents skills start off in the marketing side of things on how its presented etc

Yes they tell tenants there is a shortage of properties relative to demand and if they act quick they may be able to bag this one, things like that to encourage applications

We do this all the time even in a slow market, tenants don't usually analyse supply and demand too closely

 

[sumterrence]

I've got an agent which i'm using in Redbank Plains at the moment, if you wish you can PM me and I'll give you the details, hopefully not the same agent lol.

But i'm at the moment achieving 290/wk and will be increasing to 300/wk in July.

Mine's a 3 bedroom oldish house, and same as you did a minor reno (painted internal walls and new oven cook top etc).

 

[DavidMc]

maybe $280-$285 per week

if we had a lot more interest, i probably wouldnt be too fussed, but 3-4 parties in 4 inspections total is whats concenring me

an agent cant force someone to apply which I undersantd

, an agents skills start off in the marketing side of things on how its presented etc

Did you first advertise it for rent at $320-340pw?

It seems like it was listed too high and has now gone stale. I'd take it off and re-advertise at $285pw fresh.

 

[wylie]

We are having trouble inner south side (Balmoral, Morningside, Bulimba area without being too specific). Were getting $615 per week but realise now that the tenants went in at $590 which seemed easy at the time. The house was positioned to suit their needs, they had their own rental, trying to sell, so rent was offset by their own rental.

We increased after one year to $600 and then again in January to $615.

We are now contemplating lowering to $500 to get a tenant. I'm told we are not alone and rents have dropped. I believe probably we were getting higher than normal rent due to this house suiting the immediate needs of the tenants two years ago.

I've been watching houses within a street of this also dropping each week, with well over a thousand page hits and still sitting.

I'm not really concerned, and will sit for a few more days before lowering again. We held four open houses and had one prospective tenant. Didn't take it. Another appointment brought a punter who didn't take it.

Agent thought we were priced well at $560/$580 but not in the current depressed market.

Ten years ago this would have made me very nervous, but luckily we are not sweating on the rent like we used to. I'm not being flippant about this, but thankful we can afford to have it empty and can afford to still put food on the table if we end up dropping the $100 per week we are facing.

 

[Sonamic]

Slow time of year? I had the same problem this time last year. Dropped price a little. Offered 6 month Lease option to get through till Xmas. Finally signed a Tenant (had to allow Pets), after the 6 months they resigned for another 12 months with a rent increase and now on a summer to summer lease.

 

[wylie]

Slow time of year? I had the same problem this time last year. Dropped price a little. Offered 6 month Lease option to get through till Xmas. Finally signed a Tenant (had to allow Pets), after the 6 months they resigned for another 12 months with a rent increase and now on a summer to summer lease.

Peak time for our areas is January/February and demand for houses in school catchments helps them rent quickly at this time. We end all our leases in January or February. I'm thinking we scored higher rent than we should have got due to the circumstances and needs of the family who rented it (with hindsight).

But rents are struggling and I'm told that by the agent we have it with, as well as watching others around the same area drop prices as the weeks tick by, and still be sitting empty.

We had been getting $450, spent $20K(ish) on a second hand (but pretty nice) kitchen and a fresh coat of paint. I put it on at $590 after looking at what else was available, and had no trouble getting it.

So, if we now rent it at $500 we are not doing too badly and the money spent freshening it up is still covered by the extra rent, but gee it hurts to take such a drop. I prefer to look on the bright side and think we've been getting great rent for two and a half years...

 

[Sonamic]

Peak time for our areas is January/February and demand for houses in school catchments helps them rent quickly at this time. We end all our leases in January or February. I'm thinking we scored higher rent than we should have got due to the circumstances and needs of the family who rented it (with hindsight).

But rents are struggling and I'm told that by the agent we have it with, as well as watching others around the same area drop prices as the weeks tick by, and still be sitting empty.

We had been getting $450, spent $20K(ish) on a second hand (but pretty nice) kitchen and a fresh coat of paint. I put it on at $590 after looking at what else was available, and had no trouble getting it.

So, if we now rent it at $500 we are not doing too badly and the money spent freshening it up is still covered by the extra rent, but gee it hurts to take such a drop. I prefer to look on the bright side and think we've been getting great rent for two and a half years...

Agreed. Mines now mid January. Peak rental season. February would be a shrewd move too. Nobody wants to move house just weeks after kids have started a new year of school. $90 a week is quite a hit though. But methinks you put it to good use while things were good.

 

[jerrybee]

One of mine settled today and I'm going to take my sweet time to renovate it since I want it to hit the market in late June. June / July is not as good as Jan / Feb but it's probably the second best time of year to be looking for a tenant. Feels so good not to have to rush a renovation for once!

For the rest of you just wait a few weeks. It should warm up considerably by the end of the month.

 

[hugh72]

a few opinions would be apprecaited,
short version
property now been on the market for 7 weeks odd now, total of 3-4 parties inspected across 4 inspections, 3 applications taken, none proceeded

house: 3bdr highest, recently budget renoed, in redbank plains

ad is quite good, photos good,

the only bug ive had is being quoted $320-$340 per week (quoted half way through reno), its now dropped from this range down under $300, which sort of annoys me, because I was quoted unrenoed $300, when searching for managing agents.

a few weeks ago, got told at $270 it will walk out the door, after subsequent price drops its almost at this price and still no interest,

there arent many other agents that seem to specialise in this suburb, so I cant really try others for their opinion, plus the attitude of the agent I dont like (more a, take it or leave it type attitude when I try and negotiate anything except price drops)

the only option im thinking of is getting another gent on board and giving them an option to list or exclusive listing

Older highset there would rent for less than $300 per week, I have a newer 3bedroom lowest which rents for $305 per week which is at market rates.
If you look at stock available there is plenty available with brand new places listed at about $320 per week.
There are lots of NRAS properties listed at lower rents again.
It might just be a case of it being listed slightly high as there is quite a bit of competition currently.

 

[Gateway]

With interest rate at record low and low inflation, rent is unlikely to go up any time soon. Lucky if you find a tenant who pays market rent. Cheers

 

[mja]

Can you take a hit to just get it rented out and opt for a 3 month lease, followed by a top up rent $15/$20? There should be agents in Goodna/Springfield who would have properties from Redbank Plains on their rental roll.

 

[Peterw]

The reality is that the market for both rentals and sales is a very fluid beast. It all revolves around supply and demand. As we know the supply is constantly being added to by new product. And yes the demand is also being added to, by population growth. Sadly both don't naturally tract each other on a monthly or quarterly basis. Over time, things adjust, and usually there is "growth" albeit minor at times, however the short term movements can be "sharp".

Take the cash flow, and look to the situation improving itself at some later stage.